OPEN-SOURCE SCRIPT
ATK/DEF Fibonacci Reaction
📊 ATK/DEF Fibonacci Reaction
Overview
ATK/DEF Fibonacci Reaction is an auto-directional Fibonacci retracement tool that combines smart trend detection with real-time price action analysis. Unlike static Fibonacci tools that require manual drawing, this indicator automatically adapts to market conditions — plotting retracement levels from low to high in uptrends, and from high to low in downtrends.
Why this mashup matters:
Most Fibonacci tools only plot levels, leaving traders to manually interpret price action. This script solves that by integrating three complementary components into one workflow: Auto-Direction Fib (identifies key levels) + Liquidity Detection (flags potential fakeout zones) + Price Behavior Analysis (translates price action into actionable signals). The synergy is simple: Fib levels tell you where price might reverse, Liquidity tells you where traps might form, and Fib Reaction tells you what is actually happening in real-time. This eliminates the need to switch between multiple indicators or guess price behavior at key levels.
How It Works
The script calculates the highest and lowest price over the user-defined Lookback Period, then plots 7 Fibonacci retracement levels. It automatically detects trend direction using SMA crossover: if the market is in an uptrend, levels are drawn from low to high; in a downtrend, from high to low. Current price position is shown as a percentage, and the script continuously evaluates whether price is bouncing off support, rejecting resistance, or breaking through — generating clear, actionable signals.
What makes this original:
Unlike existing Fibonacci tools that simply draw lines, this script introduces a decision-support layer. The combination of Fib Behavior + Fib Reaction + Liquidity Detection creates a feedback loop rarely seen in open-source Pine Script tools. While other scripts tell you where the levels are, this one tells you what price is doing at those levels — bridging the gap between technical analysis and actionable trading decisions.
Signal Interpretation
Signal Meaning Suggested Action
🟢 Bounce at Support Price rejected support — potential long opportunity Look for confirmation
🔴 Reject at Resistance Price rejected resistance — potential short opportunity Look for confirmation
🚀 Break Resistance Price broke above resistance — bullish momentum Monitor for continuation
💥 Break Support Price broke below support — bearish momentum Monitor for continuation
🟡 Testing S/R Price testing key level — no clear direction Wait for confirmation
How to Use
Scenario What to Watch
Long setup Uptrend + price near 50/61.8% + Bounce at Support signal
Short setup Downtrend + price near 50/61.8% + Reject at Resistance signal
Breakout setup Break Resistance → bullish momentum; Break Support → bearish momentum
Avoid trading Testing S/R signal — price lacks clear direction
Parameters
Parameter Default Description
Lookback Period 100 Range for highest/lowest price calculation (20-500)
Extension Bars 20 Horizontal line extension to the right (1-100)
Trend Detection Period 50 SMA period for trend direction (20-200)
Show Info Table On Toggle the live data table
Best Practices
Best used on 4H, Daily, or Weekly for swing trading; also works on 15m-1H for intraday
Most effective in trending markets; can be combined with RSI or MACD for confluence
Focus on 50% and 61.8% levels — they often act as the strongest reversal zones
When Liquidity Detection shows "Near Liquidity High/Low" alongside a Fib test, expect higher volatility and potential fakeouts
Disclaimer
Past performance does not guarantee future results. This indicator is for educational and analytical purposes only. Always conduct your own research and risk management before trading.
Overview
ATK/DEF Fibonacci Reaction is an auto-directional Fibonacci retracement tool that combines smart trend detection with real-time price action analysis. Unlike static Fibonacci tools that require manual drawing, this indicator automatically adapts to market conditions — plotting retracement levels from low to high in uptrends, and from high to low in downtrends.
Why this mashup matters:
Most Fibonacci tools only plot levels, leaving traders to manually interpret price action. This script solves that by integrating three complementary components into one workflow: Auto-Direction Fib (identifies key levels) + Liquidity Detection (flags potential fakeout zones) + Price Behavior Analysis (translates price action into actionable signals). The synergy is simple: Fib levels tell you where price might reverse, Liquidity tells you where traps might form, and Fib Reaction tells you what is actually happening in real-time. This eliminates the need to switch between multiple indicators or guess price behavior at key levels.
How It Works
The script calculates the highest and lowest price over the user-defined Lookback Period, then plots 7 Fibonacci retracement levels. It automatically detects trend direction using SMA crossover: if the market is in an uptrend, levels are drawn from low to high; in a downtrend, from high to low. Current price position is shown as a percentage, and the script continuously evaluates whether price is bouncing off support, rejecting resistance, or breaking through — generating clear, actionable signals.
What makes this original:
Unlike existing Fibonacci tools that simply draw lines, this script introduces a decision-support layer. The combination of Fib Behavior + Fib Reaction + Liquidity Detection creates a feedback loop rarely seen in open-source Pine Script tools. While other scripts tell you where the levels are, this one tells you what price is doing at those levels — bridging the gap between technical analysis and actionable trading decisions.
Signal Interpretation
Signal Meaning Suggested Action
🟢 Bounce at Support Price rejected support — potential long opportunity Look for confirmation
🔴 Reject at Resistance Price rejected resistance — potential short opportunity Look for confirmation
🚀 Break Resistance Price broke above resistance — bullish momentum Monitor for continuation
💥 Break Support Price broke below support — bearish momentum Monitor for continuation
🟡 Testing S/R Price testing key level — no clear direction Wait for confirmation
How to Use
Scenario What to Watch
Long setup Uptrend + price near 50/61.8% + Bounce at Support signal
Short setup Downtrend + price near 50/61.8% + Reject at Resistance signal
Breakout setup Break Resistance → bullish momentum; Break Support → bearish momentum
Avoid trading Testing S/R signal — price lacks clear direction
Parameters
Parameter Default Description
Lookback Period 100 Range for highest/lowest price calculation (20-500)
Extension Bars 20 Horizontal line extension to the right (1-100)
Trend Detection Period 50 SMA period for trend direction (20-200)
Show Info Table On Toggle the live data table
Best Practices
Best used on 4H, Daily, or Weekly for swing trading; also works on 15m-1H for intraday
Most effective in trending markets; can be combined with RSI or MACD for confluence
Focus on 50% and 61.8% levels — they often act as the strongest reversal zones
When Liquidity Detection shows "Near Liquidity High/Low" alongside a Fib test, expect higher volatility and potential fakeouts
Disclaimer
Past performance does not guarantee future results. This indicator is for educational and analytical purposes only. Always conduct your own research and risk management before trading.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.